Tuesday 24 January 2017

Moody’s downgrades Bank of Ireland’s UK deposit division

Independent.ie reporters

Published 11/10/2011 | 12:58

Ratings agency Moody’s has downgraded the deposit rating of Bank of Ireland’s British division.

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The move came on growing speculation that if the operations encountered problems, the Government there would not provide support.

The banks mortgage division there has is worth about €30bn and its large exposure to the UK, where property prices have also fallen, is perceived as a disadvantage.

Moody's said its decision to cut to Ba1/Not-Prime with a negative outlook from Baa3/Prime-3 follows is general cut in British banks ratings.

"Moody's has lowered to 0 from 2 the notches of systemic support it incorporates into BoI UK's long-term deposit rating," it said in a statement.

"We believe that there is an increased likelihood that the Irish government would provide support to BoI (UK) through BoI," Moody's said.

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